- Grab leads Southeast Asia’s food delivery with a 55% market share.
- Competitors Foodpanda and Gojek declined amid Grab’s 6.8% growth.
- Consolidation continues as uncertainties spur cost-cutting despite 5% overall order value rise.
A recent report by Momentum Works highlights Grab’s dominant position in Southeast Asia’s food delivery landscape, capturing an impressive 55% of the food delivery gross merchandise value (GMV) in 2023.
The ride-hailing giant’s substantial growth, with a 6.8% year-on-year increase in GMV, stands in stark contrast to its competitors, as Foodpanda and Gojek experienced declines of 12.9% and 10% year-on-year, respectively.
Potential for expansion
The report underscores Grab’s potential for further expansion, considering it currently serves only 5% of the region’s 600 million population as monthly transacting customers. The overall food delivery expenditure in Southeast Asia exceeded US$17.1 billion, marking a 5% year-on-year growth.
Vietnam led the growth with a notable 28% increase in GMV, followed by Malaysia, Thailand, and Indonesia, while Singapore’s growth remained stable.
Uncertainties resulted in cost-cutting
Despite F&B spending surpassing pre-pandemic levels, the report notes that premium brands, facing macro uncertainties, resorted to cost-cutting measures and shutdowns.
Amid this evolving landscape, consolidation remains a common strategy, with companies like Delivery Hero exiting Vietnam and seeking to sell Foodpanda in Southeast Asia, while Chinese F&B brands, such as Luckin Coffee and Cotti Coffee, are eyeing the region for additional growth prospects.
Factors affecting growth
According to Jianggan Li, CEO and founder of Momentum Works, the region’s robust F&B consumption, low food delivery penetration, and ongoing consolidation create ample room for growth in the food delivery platform sector.
